07 Dec 2021

Bitcoin falls sharply amid weekend liquidation frenzy

Bitcoin is down 10% after a week filled with volatility.
Source: NYDIG Data
On Saturday, high selling pressure in the spot market combined with low weekend liquidity made the price drop below a point where many futures positions would be liquidated. The first liquidations triggered a classic liquidation cascade, rapidly pushing the bitcoin price to around $42,000. The price has since recovered some of its losses, currently trading at $51,000.ETH and BNB recovered from the market crash faster than bitcoin. ETH ends the past seven days where it started, while BNB is down 4%.
Source: CoinMetrics
Once again, bitcoin’s correlation with the S&P 500 increases in a risk-off period, indicating that bitcoin might not (yet) be the safe-haven asset its proponents want it to be.Terra is the best performer of the top 50 coins by market capitalization with a 34% gain over the past seven days - a solid performance considering bitcoin’s 10% fall over the week.
Source: CoinGecko,
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